Electronic Cash Ledger, Electronic Credit Ledger and Electronic Liability Ledger:
Electronic Cash Ledger: (E-Cash)
Section 49(1) and Section 49(3) talks about Electronic Cash Ledger;
E-Cash Ledger contains a summary of all the deposits and payments made by a taxpayer.
As per section 49(1) of the Goods and Service Tax Act, 2017 every deposit made towards tax, interest, penalty, late fee etc. by a person by internet banking or by using credit/debit cards; NEFT; RTGS or by other mode shall be credited to his E-cash ledger.
As per section 49(3) of the Goods and Service Tax Act, 2017, such amount shall be utilized for making any payment towards Tax, Interest, penalty, fees or any other amount which is payable.
Payment of challan less than or equal to Rs. 10,000 can be done over the counter with cash/cheques/DD through authorised banks; but where Payments greater than Rs. 10,000 can be made through digital mode only.
AS per rule 87(1), E-Cash ledger shall be maintained in FORM GST PMT-05 on common portal for crediting amount deposited & debiting payments towards tax, interest, penalty, fees etc.
Person depositing the amount in E-Cash ledger shall generate a challan in FORM GST PMT-06 on common portal & enter the details of the amount to be deposited by him towards tax, interest, penalty, fees etc.
Such challan 14-digit unique Common Portal Identification Number (CPIN) & shall be valid 15 days.
There is single Challan prescribed for all taxes, fees, penalty, interest & other payments under GST.
Unregistered person shall make payment on the basis of a temporary identification number.
If a person has claimed refund of any amount from E-Cash ledger, such amount shall be debited to E-Cash ledger.
How to utilize the amount reflected in E-Cash Ledger?
Ledger is displayed major head-wise i.e. IGST, CGST, SGST/UTGST, and CESS.
Each major head is divided into five minor heads i.e. Tax, Interest, Penalty, Fee, and Others.
Information is kept minor head-wise for each major head.
Balance in electronic cash ledger or electronic credit ledger after payment of tax, interest, penalty, fee or any other amount payable may be refunded as per sec 54.
Electronic Credit Ledger: (E-Credit Ledger):
Section 49(2) of the Goods and Service Tax Act, 2017 states that Input Tax Credit of a Registered Person shall be credited to his Electronic Credit Ledger.
Section 49(4) of the Act, states that Credit in this ledger can be used to make payment of only tax and not other amounts such as interest, penalty, fees etc.
Input tax credit cannot be utilized for tax payable under reverse charge mechanism.
E-Credit ledger shall be maintained in FORM GST PMT-02 for each Registered Person eligible for Input Tax Credit on the common portal and every claim of Input Tax Credit shall be credited to the said ledger.
As per section 49, 49A and 49B, E-Credit ledger shall be debited to the extent of discharge of any liability.
Where a registered person has claimed refund of any unutilized amount from E-Credit ledger as per section 54, such amount to the extent of the claim shall be debited in the said ledger.
Electronic Liability Ledger:
As per section 49(7) of the Goods and Service Tax Act, 2017, all liabilities of taxable person under GST shall be recorded & maintained in this ledger.
It shall be maintained in FORM GST PMT-01 for each person liable to pay tax, interest, penalty, late fee etc. on the common portal and all amounts payable by him shall be debited to the said register.
E-Liability Ledger of the person shall be debited by:
1.Tax, interest, late fee etc. payable as per the return furnished by the said person;
2.Tax, interest, penalty etc. payable as determined by Proper Officer in pursuance of any proceedings;
3.Tax & interest payable as a result of mismatch u/s 42/43/50;
4.Interest that may accrue from time to time.
Order of adjustment of Tax Liability is as follows:
1.First self-assessed tax; & other dues related to returns of previous tax periods
2.Self-assessed tax, and other dues related to the return of the current tax period;
3.Any other amount payable under this Act including the demand determined under section 73 and 74.
Payment of every liability by a registered person as per his return shall be made by debiting E-Credit ledger or E-Cash ledger & E-Liability register shall be credited accordingly.